World con­fi­dent about China’s econ­omy

The Pak Banker - - BUSINESS -

China reg­is­tered in 2015 the slow­est eco­nomic growth in 25 years, but world me­dia re­main con­fi­dent in the prospects of the Chi­nese econ­omy, re­gard­ing the coun­try as the main driver of the global eco­nomic growth.

The Chi­nese Min­istry of Fi­nance said Mon­day that the Chi­nese econ­omy ex­panded 6.9 per­cent last year.

De­spite the slow­down, over­seas ex­perts be­lieve China has gained a strong foothold in the econ­omy of the fu­ture by em­brac­ing the new in­dus­trial rev­o­lu­tion and en­cour­ag­ing In­ter­net­based in­no­va­tions.

China is edg­ing closer to lead­ing the world's new in­dus­trial rev­o­lu­tion, the ex­perts said at the Davos fo­rum held over the week­end un­der the theme of "Mas­ter­ing the Fourth In­dus­trial Rev­o­lu­tion."

"I do not see any rea­son why China should not be the lead­ing or at least un­der the top three lead­ing coun­tries driv­ing that trans­form­ing for­ward," said Bernd Leuk­ert, mem­ber of the ex­ec­u­tive board of SAP, a global leader in cor­po­rate man­age­ment soft­ware.

China has been among the lead­ing coun­tries in re­cent years in terms of the num­ber of pa­tent ap­pli­ca­tions in 3D print­ing, robotic en­gi­neer­ing and nan­otech­nol­ogy, ac­cord­ing to the sta­tis­tics re­leased by the World In­tel­lec­tual Prop­erty Or­ga­ni­za­tion.

Hans-Paul Buerkner, chair­man of the Bos­ton Con­sult­ing Group, told Xin­hua that among economies talk­ing about re­form or trans­for­ma­tion, China would prob­a­bly de­liver greater cer­tainty than the other parts of the world.

De­spite chal­lenges like the re­moval of ex­cess ca­pac­ity, "the sin­cer­ity of the ef­forts in China is very strong," he said. Re­gard­ing in­no­va­tion as the core of the na­tional de­vel­op­ment plan, Chi­nese govern­ment has im­ple­mented mea­sures to drive mar­ket­based re­forms, en­cour­age in­no­va­tion and en­trepreneur­ship, and cut red tape by stream­lin­ing pro­ce­dures.

"A num­ber of ac­tiv­i­ties de­fined by the govern­ment in its 13th FiveYear Plan such as the 'In­ter­net Plus' and ' Made in China 2015' show that China is go­ing right to­wards that di­rec­tion," said Klaus Sch­wab, founder and ex­ec­u­tive chair­man of the World Eco­nomic Fo­rum.

Ac­cord­ing to data from the Lon­don-based con­sult­ing firm Pre­qin Ltd, in 2015, global ven­ture cap­i­tal made 1,555 in­vest­ments in China's star­tups with a to­tal value of $37 bil­lion, up 147 per­cent over the pre­vi­ous year, show­ing the in­vestors' con­fi­dence in China's pro-in­no­va­tion pol­icy and busi­ness-friendly en­vi­ron­ment.

"Peo­ple were quite keen to see how China is trans­form­ing from a man­u­fac­tur­ing hub to an in­no­va­tion hub," said David Aik­man, chief rep­re­sen­ta­tive of­fi­cer for Greater China, World Eco­nomic Fo­rum.

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